FORM OF
COMMSCOPE, INC.
2006 LONG TERM INCENTIVE
PLAN
EMPLOYEE RESTRICTED STOCK UNIT
AGREEMENT
(WITH RELATED DIVIDEND EQUIVALENT
RIGHTS)
THIS AGREEMENT, made as of the ____ day of
________, 2009 (the “ Date of Grant ”), between
CommScope, Inc., a Delaware corporation (the “ Company
”), and _________ (the “ Grantee
”).
WHEREAS, the Company has adopted the CommScope,
Inc. 2006 Long Term Incentive Plan (the “ Plan
”) in order to provide an additional incentive to certain
employees and directors of the Company and its Subsidiaries;
and
WHEREAS, the Committee responsible for the
administration of the Plan has determined to grant restricted stock
units to the Grantee as provided herein;
NOW, THEREFORE, the parties hereto agree as
follows:
1.1 The
Company hereby grants to the Grantee an award (the “
Award ”) of ___ restricted stock units (the “
Restricted Stock Units ”) and ____ dividend equivalent
rights (the “ Dividend Equivalent Rights ”),
each Restricted Stock Unit to be accompanied by one (1) related
Dividend Equivalent Right. The Restricted Stock Units
and Dividend Equivalent Rights granted pursuant to the Award shall
be subject to the execution and return of this Agreement by the
Grantee (or the Grantee’s estate, if applicable) to the
Company. Subject to the terms of this Agreement, each
Restricted Stock Unit represents the right to receive one (1) Share
at the time and in the manner set forth in Section 7
hereof.
1.2
Each Dividend Equivalent Right represents the right to receive all
of the cash dividends that are or would be payable with respect to
the Shares represented by the Restricted Stock Unit to which the
Dividend Equivalent Right relates. With respect to each
Dividend Equivalent Right, any such cash dividends shall be paid on
the Vesting Date. The Dividend Equivalent Rights shall
be subject to the same terms and conditions applicable to the
Restricted Stock Units, including, without limitation, the
forfeiture and vesting provisions contained in Sections 2 through
4, inclusive, of this Agreement. In the event that the
Restricted Stock Units are forfeited pursuant to Section 3 hereof,
the related Dividend Equivalent Right shall also be
forfeited.
1.3 This
Agreement shall be construed in accordance and consistent with, and
subject to, the provisions of the Plan (the provisions of which are
hereby incorporated by reference) and, except as otherwise
expressly set forth herein, the capitalized terms used in this
Agreement shall have the same definitions as set forth in the
Plan.
Except as provided in Sections 3 and 4 hereof,
100% of the Restricted Stock Units granted hereunder will vest on
the third (3 rd )
anniversary of the Date of Grant (the “ Vesting Date
”) provided the Grantee has remained in continuous employment
from the Date of Grant to the Vesting Date.
3.
Termination of Employment .
3.1
Death or Disability . In the event of the
Grantee’s death or Disability prior to the Vesting Date, 100%
of the Award shall become immediately vested.
3.2
Retirement . In the event that (i) the Grantee
has completed 10 years of service for the Company, a Subsidiary or
a Division, and the Grantee’s employment is terminated prior
to the Vesting Date as a result of the Grantee’s voluntary
retirement after attainment of age 55, or (ii) the Grantee’s
employment is terminated prior to the Vesting Date as a result of
the Grantee’s voluntary retirement after attainment of age
65, the “Pro Rata Portion” (as defined below) of the
Award shall remain outstanding and shall be eligible to vest on the
Vesting Date if the Grantee complies with the post-employment
covenants described in Exhibit A , and the remainder of the
Award shall immediately be forfeited. In the event of a
breach by the Grantee of any of the post-employment covenants
described in Exhibit A hereto, the entire Award shall
immediately be forfeited. The “Pro Rata
Portion” shall be equal to a fraction (not to exceed one),
the numerator of which is the number of whole calendar months
between the Date of Grant and the Grantee’s date of
retirement and the denominator of which is 36 (rounded to the
nearest thousandth).
3.3
Cause . In the event the Grantee’s
employment is terminated for Cause prior to the Vesting Date, the
Award shall immediately be forfeited. For purposes of
this Agreement, “Cause” shall mean (i) in the case of a
Grantee whose employment with the Company, a Subsidiary or a
Division is subject to the terms of an employment agreement which
includes a definition of “Cause,” the meaning set forth
in such employment agreement during the period that such employment
agreement remains in effect; and (ii) in all other cases, (a) the
Grantee’s failure or refusal to perform such Grantee’s
substantive duties or to follow the lawful directives of the Board
or the board of directors of a Subsidiary, as applicable (or of any
superior officer of the Company, a Subsidiary or a Division having
direct supervisory authority over such Grantee); (b) the
commission of an act of fraud, theft, breach of fiduciary
obligation with respect to the Company, a Subsidiary or a Division
or a violation of any material policies of the Company, a
Subsidiary or a Division, as applicable, of which the Grantee has
had prior notice; (c) dishonesty, willful misconduct, or gross
negligence in the performance of any substantive duties; or
(d) the indictment for, or conviction of or plea of guilty or
nolo contendere to any felony (whether or not involving the
Company, a Subsidiary or a Division).
3.4
Other Termination of Employment . If the
employment of the Grantee is terminated (including the
Grantee’s ceasing to be employed by a Subsidiary or a
Division as a result of the sale of such Subsidiary or Division or
an interest in such Subsidiary or Division) prior to the Vesting
Date under any circumstance other than those set forth in Section
3.1, Section 3.2 and Section 3.3, the Award shall immediately be
forfeited.
4.
Effect of Change in Control .
Notwithstanding anything contained in this
Agreement to the contrary, in the event of a Change in Control at
any time prior to the Vesting Date the Award shall become
immediately vested.
5.
Non-transferability .
The Award may not be sold, transferred or
otherwise disposed of and may not be pledged or otherwise
hypothecated.
6.
No Right to Continued Employment
.
Nothing in this Agreement or the Plan shall be
interpreted or construed to confer upon the Grantee any right with
respect to continuance of employment by the Company, any Subsidiary
or any Division, nor shall this Agreement or the Plan interfere in
any way with the right of the Company, any Subsidiary or any
Division to terminate the Grantee’s employment therewith at
any time.
Except as provided in the following sentence, on
the Vesting Date, or as soon thereafter as administratively
practicable (but in no event later than 2 ½ months after the
Vesting Date occurs), the Company shall issue Shares to the Grantee
(or, if applicable, the Grantee’s estate) with respect to the
Restricted Stock Units that becomes vested (A) on the Vesting Date,
(B) pursuant to Section 3.1 by reason of the Grantee’s
Disability that does not constitute a Section 409A Disability (as
defined below) or (C) pursuant to Section 4 by reason of a Change
in Control that does not constitute a Section 409A Change in
Control (as defined below). Shares with respect to
Restricted Stock Units that become vested (A) pursuant to Section
3.1 by reason of the Grantee’s death, (B) pursuant to Section
3.1 by reason of the Grantee’s Disability that constitutes a
“disability” within the meaning of Section 409A of the
Code and the regulations and interpretive guidance issued
thereunder (a “ Section 409A Disability ”) or
(C) pursuant to Section 4 by reason of a Change in Control which
also constitutes a change in control or effective control of the
Company or a change in the ownership of a substantial portion of
its assets, in each case within the meaning of Section 409A of the
Code and the regulations and interpretive guidance issued
thereunder (a “ Section 409A Change in Control
”), shall be issued upon the date such Restricted Stock Units
become vested, or as soon thereafter as administratively
practicable (but in no event later than 2 ½ months after the
date the Restricted Stock Units become
vested). Notwithstanding anything to the contrary
contained herein, no Shares may be transferred to any person other
than the Grantee unless such other person presents documentation to
the Committee, which proves to the Committee to its reasonable
satisfaction such person’s right to the transfer.
8.
Withholding of Taxes
.
Prior to the
delivery to the Grantee (or the Grantee’s estate, if
applicable) of Shares pursuant to Sections 1 and 7 hereof, the
Grantee (or the Grantee’s estate) shall pay, or make
arrangements acceptable to the Company to pay, the federal, state
and local income taxes and other amounts as may be required by law
to be withheld by the Company (the “ Withholding Taxes
”) with respect to such Shares. Approximately
sixty (60) days prior to any Vesting Date, the Company will advise
the Grantee (or the Grantee’s estate, if applicable) of any
alternatives that may be available for the payment of Withholding
Taxes, and, if there is more than one alternative, will provide the
Grantee (or the Grantee’s estate) with a form with which the
Grantee (or the Grantee’s estate) may elect from among the
alternatives made available for the purpose of paying the
Withholding Taxes (“ Tax Election
”). If a Tax Election is provided, prior to the
delivery of Shares, the Grantee (or the Grantee’s estate)
shall make a written election specifying the method by which the
Grantee (or the Grantee’s estate) will pay the Withholding
Taxes by completing and delivering the form of Tax Election in the
manner specified in the form of Tax Election; provided, that, for
Grantees who are subject to Section 16 of the Exchange Act, one of
the alternatives to satisfy all or any portion of the
Withholding Taxes shall always be that the Grantee may elect to
have withheld a number of whole Shares otherwise deliverable to the
Grantee and having a Fair Market Value equal to the Withholding
Taxes.
“Fair
Market Value” shall mean (i) if the Shares are listed for
trading on the New York Stock Exchange, the closing price at the
close of the primary trading session